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Financial Institution Employee’s Guide to Deposit Insurance

Important Update!

Revocable and Irrevocable Trust Rule Change Effective April 1, 2024
Mortgage Servicing Accounts Rule Change Effective April 1, 2024

All the rules discussed in this section are current through March 31, 2024. The FDIC approved changes, on January 21, 2022, to the deposit insurance rules for revocable trust accounts (including formal trusts, POD/ITF), irrevocable trust accounts, and mortgage servicing accounts. For most trust depositors (those with less than $1,250,000), the FDIC expects the coverage levels to be unchanged. However, the new rule may reduce coverage for those depositors who have placed more than $1,250,000 per owner in trust deposits at one insured institution. The new rule (PDF) combines the revocable and irrevocable trust account categories into one insurance category, eliminates some complex rules, and utilizes a simple insurance calculation. You can learn more about the new changes, including for mortgage servicing accounts, by reviewing this fact sheet (PDF). The changes are effective April 1, 2024, giving bankers and depositors time to adjust to the new rule, including making any changes to avoid a potential reduction in coverage. We suggest depositors and bankers review the new rules for time deposits with maturities beyond April 1, 2024.

Questions?

You can submit your inquiry using the FDIC Information and Support Center.
You can also call the FDIC at (877) 275-3342 or (877) ASK-FDIC.
For the hearing impaired call (800) 877-8339.

2016 Edition

Complete Guide - PDF

Financial Institution Employee’s Guide to Deposit Insurance (“Employee’s Guide”)

Note about possible changes to this Employee’s Guide:

This edition of the Financial Institution Employee’s Guide to Deposit Insurance (“Employee’s Guide” or “Guide”) includes regulatory and statutory deposit insurance rules that are effective as of the date of publication. The online version of this Employee’s Guide will be updated upon any regulatory or statutory change that affects the contents of this document.


Introduction - PDF

Introduction

About the Employee's Guide

This Employee’s Guide is intended to assist depository institutions insured by the Federal Deposit Insurance Corporation (“FDIC”) in providing accurate information about FDIC insurance coverage to their depositors.

Note: For simplicity, the term “insured depository institution” (“IDI”) is used throughout this Employee’s Guide to mean any bank or savings association that is FDIC-insured.

Important Disclaimers

The information contained in this Employee’s Guide is intended to assist IDI employees in determining FDIC deposit insurance coverage for deposits held in IDIs. The information in this resource is based on the FDIC’s deposit insurance rules and regulations found at 12 C.F.R. Part 330 and related advisory opinions in effect as of the publication of this document.

The Employee’s Guide is not intended to provide legal, financial, or estate planning advice, nor is it intended to provide guidance for the creation of revocable or irrevocable trust agreements. For legal, financial or estate planning advice, it is recommended that depositors contact a financial advisor or an attorney.

The examples provided in this Employee’s Guide are drawn from thousands of questions received by the FDIC. The examples are not intended to describe every situation that may arise. This is especially true for revocable or irrevocable trusts.

Use caution when applying the examples in this Employee’s Guide to determine FDIC deposit insurance coverage for a specific trust agreement. Although the trust described in an example may appear to be similar to an actual trust, there may be subtle differences in the terms and conditions that could result in a different answer when calculating deposit insurance coverage. In addition, the modification of a trust agreement at some future date may affect the calculation of coverage for a particular trust. In addition, the death of an owner or beneficiary will significantly affect FDIC deposit insurance coverage. This Employee’s Guide may use examples or terminology that may not be applicable to a specific individual’s trust because of regulatory or statutory provisions in the state in which the depositor resides.

Federal law expressly prescribes the specific amount and limits of deposit insurance the FDIC can pay to depositors and no representation made by any person or organization can increase or alter that coverage.

The Employee’s Guide should be used in conjunction with the FDIC deposit insurance reference materials found at the FDIC Deposit Insurance webpage. For help from an FDIC deposit insurance subject matter expert, call the FDIC toll free at 1-877-ASK-FDIC (1-877-275-3342).

All names used in the examples in this Guide are fictitious and do not represent real persons.

Effective Date

This edition of the Employee’s Guide describes the deposit insurance rules in effect at publication. Included in this Guide is current information on all deposit insurance coverage regulations effective through the publication date of this Employee’s Guide. Additional information can be found at FDIC’s website.


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